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IKEA pledges $1.13 billion for renewables and climate action

LONDON: The Swedish furniture retailer IKEA has today pledged €1 billion (US$1.13 billion) in climate-related actions, including investment in wind and solar energy and to help communities impacted by climate change.

While world representatives have gathered in Bonn in Germany to discuss the draft agreement on climate measures, one of the world’s leading retail companies has announced an increase in its investment in climate actions, proving there is momentum to bring forward the transition to a low carbon economy.

IKEA group has committed to invest €500 million in wind energy and €100 million in solar in the next five years. This commitment adds to the €1.5 billion that the group has invested since 2009, which has set the company on track to meet its target of going 100% renewable by 2020.

Last September IKEA became one of the first companies to sign up to RE100, a campaign led by The Climate Group in partnership with CDP, that is supporting influential companies around the world to use 100% renewable energy. The announcement came during the Opening Day of Climate Week NYC, alongside similar commitments from other companies like Swiss RE and Nestle.

Emily Farnworth, RE100 Campaign Director, The Climate Group said: “This new announcement demonstrates IKEA sees the long term value their business can deliver through investment in renewable energy – going well beyond their own commitment to 100% renewable power. It is an exceptional strategy, which makes them pioneers in finding new ways to deliver business and social benefits. We are confident that this important step will convince more businesses to come forward with their commitments and to become leaders in the low carbon economy.”

Peter Agnefjäll, CEO, IKEA Group, stated: "Climate change is one of the world’s biggest challenges and we need bold commitments and action to find a solution. That’s why we are going all in to transform our business, to ensure that it is fit for the future and we can have a positive impact.

“This includes going 100% for renewable energy, by investing in wind and solar, and converting all our lighting products to affordable LED bulbs, helping many millions of households to live a more sustainable life at home.”

The remaining part of the pledge - €400 million – will be used by the IKEA foundation to provide help to families and communities impacted by climate change.